Transcribed Image Text: On 01-01-18, O issued $8,000,000 of its 4%,

Transcribed Image Text: On 01-01-18, O issued $8,000,000 of its 4%,
6-year callable term bonds dated 01-01-18.
The bonds pay interest every July
01 and January 01 and mature on
01-01-24. O can call in the bonds any time
after 01-01-21 at 103 plus interest. At the
time O issued the bonds, similar bonds
paid 4%. Upon issuing the bonds, O
incurred and paid $75,000 of bond
issuance costs. O uses the effective-interest
method to amortize any bond discount or
premium. O prepares AJES only as of every
December 31. On 03-01-21, G called in
$4,000,000 of the bonds at the call price of
103 plus interest. Prepare the entries O
should make on:
а. 01-01-18
5. 12-31-18
С. 03-01-21
d. 07-01-21
е. 12-31-21

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